The Nonfungible Token (NFT) sector of the cryptocurrency ecosystem also made headlines in the mainstream news media in 2021. Celebrities, musicians, sports teams, traditional auction houses and even fast-food restaurants have been involved in the creation. or selling unique digital items.
Top NFT marketplaces like OpenSea are seeing record trading volumes as projects like CryptoPunks and Pudgy Penguins trade tens of millions of dollars worth of each day. However, it can be difficult to know which projects have the ability to maintain or increase value over the long term and which projects are likely to disappear once the hype goes away.
NFT projects that fit into the growing crypto metaverse and offer multiple ways to participate and earn money, such as play to earn and staking features, are gaining traction, attracting the attention of both regular investors and institutional players.
Here are some of the best metaverse ready NFT protocols with potential long-term retention and pointers on how to find these diamonds in the rough in an increasingly congested arena of NFT projects.
Play-to-earning platforms attract and monetize the masses.
Axie Infinity has emerged as one of the groundbreaking protocols in this bull cycle as its play-to-earn style gameplay allows users to have fun fighting an in-game character named Axies while earning money at the same time.
Unlike the free-to-play app model loaded with in-game purchases designed to drain users’ bank accounts, funds spent on platforms like Axie Infinity allow for an opportunity to earn income or a decent return on investment. Decentralized Finance (DeFi) and economic principles such as staking, inflation and scarcity are designed into the gameplay model.
According to CryptoSlam data, the Axie Infinity ecosystem recently surpassed 1 million daily active users and handled an all-time high of $1.373 billion in transaction volume.
This protocol has the highest adoption rates in the world, such as Malaysia and Venezuela, where people can earn 150-200 Gentle Love Potions (SLP) daily due to people’s economic hardship. Time to write — an attractive source of daily income.
— Mr. M (@BlackMambaBitco) August 6, 2021
If the Venezuelan government introduces a monthly income of $2.40 at the exchange rate estimated by the central bank, an income of $23.70 a day could feed a family for up to 10 months.
Due to these factors, NFTs in the Axie Infinity ecosystem are more likely to retain their value over time and maintain a higher level of liquidity than many random NFT projects that are simply beautified to jpegs.
NFTs that generate tokens provide utility to collectibles.
Another project that offers a unique blend of DeFi, gameplay and NFT is Aavegotchi, a platform built on the Aave protocol, combining in-game avatars with other crypto assets to use as DeFi collateral and staking rewards. You can get it. .
Aavegotchi avatars, known as Gotchi’s, are rare and new avatars are issued only a limited number of times per year and are released via auction or lottery.
Excited! https://t.co/xt5IU3AZ0B pic.twitter.com/Do6ad1NEiT
– Aavegotchi HAUNT 2 AUG 26-29 (aveavegotchi) July 27, 2021
Users who stake native GHST tokens on the protocol will receive rewards in the form of FRENS, which can be used to purchase draw tickets for wearables, consumables or in-game items such as the Gotchi summon portal.
These items can then be combined with Gotchi to increase their scarcity and value, or they can be sold on the market as another source of income for token holders.
The ability to lock different tokens or assets to Gotchi adds another layer of value and rarity to each avatar. To extract added assets, Gotchis are destroyed in the process, increasing their scarcity.
At the time of writing, according to Aavegotchi Stats, 7,760 portals have been opened, 432 Gotchis have been sacrificed, and 7,328 Gotchis with varying traits and rarities are circulating.
Cross-asset staking and gameplay complete the metaverse.
One of the last projects in the field that is newer but nevertheless attracts attention is Illuvium, an open world fantasy battle game built on the Ethereum (ETH) blockchain.
While the project is still in development, the price of the underlying ILV token surged 1765% as excitement escalated ahead of its launch between June 22nd and August 13th.
One of the catalysts for the price increase was the introduction of ILV staking. This allows token holders to earn a return of 43.44% to 86.88% depending on how long the token is locked.
Illuvium also offered cross-asset staking via a flash pool where Axie Infinity (AXS) and Synthetix (SNX) holders can earn ILV by staking tokens on the protocol.
One method the team used to generate interest in the project was to create a unique NFT that represents some of the best crypto influencers, and the team also consistently provides teasers and updates for the characters and NFTs found in the game. I did. .
We’ll leave this right here… We know that all of you are eager for more leaks to the UI. Here’s the latest peek! pic.twitter.com/8AFzvx7Rr0
– Illuvium (@illuviumio) August 19, 2021
Creating AAA-rated games on the Ethereum blockchain has been a goal pursued by the gaming community for many years, but has hitherto been impossible due to network limitations.
If Illuvium can achieve its goal of creating highly interactive and visually engaging games that will engage users from the existing gaming community, then the assets and NFTs within the ecosystem will likely retain or increase in value over time.
Gamers spend hundreds of hours and thousands of dollars a year on the most popular free-to-play games that provide an opportunity to purchase rare items. of that day in return for all that time and money.
NFTs allow for a new paradigm in gaming where time spent in gaming and loot earned in the process can be transferred to real value with long-lasting power. Projects that adapt and integrate the growing decentralized crypto metaverse are best positioned to drive adoption and value.
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